Facebook rolled out a shopping section ‘Facebook Shops’ to its main app across the U.S and expanded Instagram’s checkout feature.
The new section Facebook Shops allows users to browse product catalogs from businesses they like, discover new businesses and make purchases, all-in-one place, and without leaving the app. A similar feature ‘ Instagram Shops’ was introduced on its photo-sharing app last month.
The news follows the launch of Facebook Shops in May and on Tuesday it announced a couple of new e-commerce features within its flagship mobile app and Instagram. Businesses were already able to add product catalogs to their Facebook pages but there was no dedicated section inside the app for browsing the selections.
The company explained the rapid shift toward online shopping as a reason to foray into eCommerce.
“During the COVID-19 pandemic, the shift to online shopping has rapidly accelerated, with an estimated 85% of people worldwide now shopping online.
We want to make shopping easier for people and empower anyone, from an entrepreneur to the largest brand, to use our apps to connect with customers and grow their business.”
Here are the details that will help people to shop on the apps and tools to help businesses sell online.
Shop Till You Drop!
A new ‘Shop’ tab is introduced in the mobile app where businesses can showcase their products and customers can shop them in the app.
“Facebook Shop makes it easy for people to find products from businesses they love, discover new ones and make purchases, all in one place.”
It’s a significant step for Facebook’s eCommerce push, helping users to browse and purchase from shop-enabled Pages directly in the app. Presently, being tested in the US but Facebook said in the coming weeks it will be available to all eligible businesses.
New customization features will also be added to Facebook Shops that includes:
- New design layouts for featuring single products or groups of products in Shops
- Real-time preview of collections as they are designed
- The ability to automatically create Shops for new sellers
- New insights to measure results in Commerce Manager
Expanding Instagram CheckOut
Checkout allows users to pay for items directly inside the app and will soon be available to all businesses in the U.S after keeping the feature exclusive to certain partners for almost 18 months. Though there is a limitation,
It will also provide an incentive by waiving the selling fees for businesses through the end of the year due to the current economic crisis.
Shop Using Messaging
Facebook added a new message option to the shop in order to connect the customers directly to the seller through Messenger, WhatsApp, or Instagram Direct.
“Messaging through Shops combines the in-store experience of being able to ask a salesperson questions with the convenience of online shopping.”
Customers can view the products in the chat and can easily share with friends and family for feedback before any purchase. This feature is now being tested on Messenger and Instagram Direct and will start testing on WhatsApp soon.
This will definitely boost Facebook’s dominant presence in messaging with its eCommerce capacity, providing compelling business opportunities as people are regular users of these messaging apps.
Live Facebook and Instagram Shopping
Another promotional option is Facebook and Instagram live shopping. This means businesses can sell products during a live stream.
“Facebook Live Shopping includes new features to help businesses easily set up a live experience featuring products from their Shop and sell directly from the video.”
Instagram Live Shopping is available to all businesses and creators using checkout in the US.
Video is the most engaging type of content and during the lockdown during the pandemic, the viewership of Facebook live streams had risen 50% since January as people looked for various ways to stay connected and entertained.
The global lockdown has provided a significant opportunity to Facebook’s eCommerce business as more people shifted to online shopping. The social network will soon become an essential part of our day-to-day lives as it prepares to build a commerce eco-system within its own network.
Snapchat Minis, bite-sized third party-apps built within Snapchat rolled out on Monday. Snapchat first previewed Minis, a lightweight, built on HTML at the 2020 Partner Summit back last month.
Four out of seven Minis debuts across the platform. These mini-apps are going live:
Meditation tool Headspace, studying collaboration tool by Tembo, an interactive messaging tool Prediction Master and Let’s do it, a mini-app by Snap.
Other minis apps -festival trip planning by Coachella, Atom’s movie ticketing, and student’s schedule planner Saturn are yet to go live.
The Easiest Way To Meditate Is With Headspace Mini
Headspace mini is a part of the initiative “to help support the mental health and emotional wellbeing of SnapChatters, said a Snap spokesperson.
Why it matters
The user base of Snapchat is one of the youngest on the social. Media as it reaches more under 30 years old who are coping up with missed schools, job loss, and socialization in the pandemic.
Users can access minis within the chat and can also check-in the sessions with friends. Users can choose from the six meditation sessions of three-four minutes. According to research conducted by Snapchat, late last year reveals that young audience consults friends first about mental health issues over parents. This new tool is even more crucial at present as it will help users (especially the young audience) to deal with a range of mental challenges in the pandemic. A Headspace spokesperson said in an email to The Verge,
“By putting these useful resources front and center where friends already meet and share, we believe Snapchat can play a unique role in empowering friends to help each other through difficult times.”
Will It Replicate WeChat Success?
Even though it’s a new and fresh concept in the U.K and the U.S, this mini-App model is famous in Asian Markets. For instance, Tencent’s WeChat has over 1 million mini-app programs that allow users to perform various tasks. Also, mobile payment services Paytm and PhonePe in India has rolled out several services like flight booking, movie tickets, or ordering a cab.
Snapchat has said previously that Tencent, an investor app in L.A influenced it to replicate the WeChat-style super app. It is a win-win situation for both parties-Snapchat and developers who are making the mini-apps. Snapchat can boost user engagement and developers can access a whole new set of audiences. Facebook, last month, had a little success over replication of the WeChat model through chatbots on Messengers.
Now, it remains to be seen, what is the audience response to the mini-app model as Snapchat gains inroads to the U.S, U.K, and other markets.
- A growing number of brands are joining the protest #StopHateForProfit, a month-long boycott of Facebook Advertising initiated by civil rights groups in response to social media giant’s handling of hate speech and misinformation.
- More than 90 marketers have joined the protest and Unilever is the latest to join the list who has paused brand advertising on Facebook, Instagram, and Twitter in the U.S. for the rest of the year.
- Facebook and Twitter shares plunged more than 7% after Unilever’s announcement.
What started as a slow protest by advertisers pulling ads from Facebook has turned into a growing boycott of the social media platform over its weak stance on hate and misinformation. Facebook shares fell more than 7% after Unilever, one of the world’s largest advertisers, joined other brands to boycott ads on social media. Unilever will no more spend on Facebook properties for advertising this year.
Mark Zuckerberg loses $7 billion after a flurry of companies pulled advertising from Facebook. The Guardian has described it as Facebook’s “largest-ever advertiser boycott”.
The campaign ‘Stop Hate For Profit’ is organized by many advocacy groups including the Anti-defamation league, NAACP, Colors of change to name a few. The campaign calls on all businesses to stop advertising on Facebook for July and demand that it tighten their content policies against hate speech and racism. It also calls for businesses to hit its main source of income- advertising, as it made $70 billion last year that accounts for nearly 99% of its total revenue.
Why It Matters:
The boycott has damaged Facebook’s reputation, and increased political pressure ahead of the election, however, it would make an insignificant difference on its bottom line given the size of the company.
Driving The News:
Here are brands that have committed to cease their Facebook spending and for a certain timeline.
– Unilever, for the rest of the year
Unilever is the latest advertiser to join the bandwagon to boycott ads on Facebook and Facebook-owned platform Instagram. It is also the first to extend the boycott to the rival platform Twitter. According to Pathmatics, an ad tracking firm, Unilever was 33rd biggest advertiser on Facebook spending over $2 million in the first three weeks of June alone. The company said in a statement,
“Continuing to advertise on these platforms at this time would not add value to people and society.”
– Verizon, through July month
The company told CNBC that it will pull out ads from all the Facebook services on June 25.
– Levi Strauss & Co., through at least end of July
The denim clothing company said June 26 in a statement,
“We want to see meaningful progress toward ending the amplification of misinformation and hate speech and better addressing of political advertisements and content that contributes to voter suppression.”
– American Honda, through July
The U.S auto brand said it would stop paid advertising for July on Facebook and Instagram. A spokesperson from the company said it will post organically on both platforms during this time. It also said, “This is in alignment with our company’s values, which are grounded in human respect.”
– Arc’teryx, through at least July
The Canadian clothing brand joining the campaign tweeted, “Facebook profits ‘will never be worth promoting hate, bigotry, racism, antisemitism & violence.’
We need a break @facebook. Effective immediately, we will be halting our global advertising with @Facebook & @Instagram until at least the end of July in support of the #stophateforprofit campaign & donating those dollars towards building more inclusive outdoors.
— Arc'teryx (@Arcteryx) June 23, 2020
– Ben & Jerry’s, through at least July
The company in support of the campaign tweeted that Facebook must take clear and unequivocal actions.
We will pause all paid advertising on Facebook and Instagram in the US in support of the #StopHateForProfit campaign. Facebook, Inc. must take the clear and unequivocal actions to stop its platform from being used to spread and amplify racism and hate. >>>https://t.co/7OpxtcbDGg pic.twitter.com/I989Uk9V3h
— Ben & Jerry's (@benandjerrys) June 23, 2020
– Diageo, beginning July 1
Spirits giant said on June 27 that it will pause paid advertising globally on all major social media platforms including Facebook, Instagram, and Twitter beginning July 1.
Diageo statement on social media advertising pause. pic.twitter.com/kRIsdFjgzk
— Diageo News (@Diageo_News) June 27, 2020
– Birchbox, through July month
The makeup company said in an Instagram post on June 26 that they pause all paid advertisements in support of the campaign.
– Coca-Cola, through late July
Coca-Cola said in a statement that it plans to pause advertising on all social media platforms for at least 30 days while it revisits its advertising policies. James Quincey, chairman, and CEO said, “We also expect greater accountability and transparency from our social media partners.”
However, it’s decision is not a part of the campaign.
– JanSport, Habitat for Humanity through July month
The backpack producer tweeted on Jun 27 that it will stop advertising for the month of July “to join the fight for stricter policies that keep racist, violent & hateful content from proliferating on these platforms.”
The global non-profit also joined the campaign and paused all paid advertising on Facebook services for July month in a Twitter post.
– Hershey, through July month and 1/3rd for rest of the year
The Hershey Company in a statement to USA Today,
“We do not believe that Facebook is effectively managing violent and divisive speech on their platform. Despite repeated assertions by Facebook to take action, we have not seen meaningful change.”
It will halt advertising for July and cut spending by one-third for the rest of the year on Facebook and Instagram.
– Rakuten Viber, indefinitely
The messaging service said on June 25 that it is severing all ties with Facebook as a part of the growing boycott. Chief executive, Djamel Agaoua, said the move to cut ties was due to Facebook’s “poor judgment in understanding its role in today’s world”. It will remove all Facebook properties including Giphy, GIF library, Facebook Connect, and Facebook SDK.
– Magnolia Pictures, Patagonia through at least end of July
The Hollywood Studio said in a Twitter post on June 23, it has chosen to stop advertising on Instagram and Facebook through at least the end of July. The clothing brand Patagonia also announced on Twitter that it will join the campaign.
The North face became the biggest and first brand to join the campaign.
— The North Face (@thenorthface) June 19, 2020
According to the running list by Sleeping giants, more than 100 advertisers have followed the suit.
Major luminaries of the ad industry have also started reviewing their ad spend and begun to pull their dollars.
– Unilever rival and largest advertiser in the country Procter and Gamble has also threatened to pull ads if platforms didn’t take ‘appropriate systematic action’ to address the hate speech.
– According to the Wall Street Journal, 360i, a digital-ad agency owned by global ad holding group Dentsu Group Inc. emailed its client to join the Facebook ad boycott.
What Is Their Next Course Of Action:
Facebook is taking a more hands-on approach as ads boycott grows. It would start labeling political speech that violates the rules, take measures to prevent voter suppression, and protect minorities.
A post violating rules but is from an important political figure, it will be marked as ‘newsworthy’. Facebook said it would expand policies around hate speech and prohibit hateful language in ads on the site.
The Big Picture:
The boycott reached its tipping point with the Black Lives Matter protests when Facebook refused to moderate the post from President Trump that many believed incited hate and violence against protesters.
Next question, is the ad boycott huge to make a dent on Facebook revenue? The impact is limited. Analysts say that the boycott is for a limited period ‘July’ and then many of the advertisers plan to return their ad dollars to Facebook because of its effectiveness. Facebook’s auctioned based system can fill the ad space quickly with marketing messages from other companies.
Our Thought Bubble:
Facebook is powerful and experienced to deal with the current situation. The brand boycott is more of a PR problem than any immediate threat to its revenue.
Brands participation is noteworthy but it’s a tiny fraction of the 8 million advertisers using Facebook advertising and it would be hard to get a huge coalition to boycott the brand for an extended period.
It would be interesting to wait and watch how Facebook addresses the brand’s concerns in the coming weeks in response to the mounting political and social pressure and reverse the damage to its reputation.
What is Digital Advertising?
Digital advertising, paid advertising, or paid marketing is an online advertising model for advertisers to target potential buyers based on their interests or intent. This Digital Advertising took birth on October 27, 1994, when the online magazine ‘Hotwired’ decided to set aside a portion of its website for advertisers to raise some money. The banner ad space had a message in rainbow font, “Have you ever clicked your mouse right here? You will.” From 1994 to 2020, digital advertising has come a long way. In 2021, the amount spent on worldwide digital advertising is estimated to touch USD 375 billion (emarketer report estimates) with Google, Facebook, and Amazon, the three largest advertising platforms contributing to 43% of the market share. Here we have provided 10 best digital advertising ideas in 2020 post coronavirus (COVID-19) but be prepared to make changes in your sales funnel to meet global digital challenges. Digital advertisers get ready for a new normal in digital advertising in 2020. After all, change is the only constant in life.
Increase in Online Spending Over the Years
Ad spending in the digital advertising market has been showing an upward rise since 2018. From USD 283 billion in 2018, it is expected to reach around USD 517 billion in 2023.
The Importance of Digital Advertising
There is a wealth of available data to impact your online advertising decisions. With digital spends getting closer to traditional ad spends, it’s without doubt, every company or brand must have a strong online presence. Very large companies with more than USD 10 billion in annual revenue spend around 11.6% and companies with annual revenues between USD 500 million to USD 1 billion spend around 8.5% of their marketing budget on digital advertising. Some of the 2019 big digital ad spenders are Comcast (USD 5.75 billion), Proctor & Gamble (USD 4.39 billion), Amazon (USD 3.38 billion), AT&T (USD 3.52 billion) and Samsung Electronics (USD 2.41 billion). While on one hand, ad spending increased, on the other hand, the demand was augmented by the addition of ad platforms.
- More money is being spent on digital v/s traditional advertising channels with digital ad spend expected to reach 60.5% of total media ad spending by 2022.
- India’s digital ad spend grew at a rate of 24% (2018 to 2019), becoming the fastest-growing digital advertising market in the world, followed by Russia at 22.5%. Both are home to large populations of increasingly digital and mobile users.
- Marketing budgets range from 8% to 16% of total revenue (B2B Products 8.6%, B2B Services 8.7%, B2C Products 9.8%, and B2C Services 15.6%).
- In many countries, 85 percent of internet users are accessing the internet on mobiles.
Types of Digital Advertising
There are different types of digital advertising available to a company or product or brand. The best ad campaigns are often a mix of two or more types of paid marketing or digital advertising. From Display Ads to SEO to PPC and more, here are the top 10 online advertising options available to a digital advertiser to execute a winning ad campaign.
What is display advertising?
Online display advertising means advertising a company or a product on websites. Display advertisements run across any website that wishes to monetize their content by selling ad space on their page. Display ads are mostly image-based ads shown on web pages within the Google Display Network (GDN is a network of websites that allow space on their web pages for Google Ads) or on a search result page. It is used to redirect the user’s attention to the company’s product. Display ads can be paid for based on three different metrics: cost per thousand impressions (CPM), cost per click (CPC), and cost per action (CPA), also known as cost per conversion.
How is the Display ad used?
Online display ads on a website, can be on the top, bottom, or right side of a page depending on the web page layout. The types of online display ads are banners, landing pages (LP’s), and popups. The types of banner ads online that appear on Google Display Network are Flash, animated GIF, and Static Banners. The most popular Display ad options are Google Shopping (allows shoppers to browse a variety of products based on their search query) and App Campaigns. The types of online Display Ads include Overlay ads, Interstitial ads, Rich Media ads, and 360° Display Ads. Display advertising and paid search advertising are the two most used forms of online advertising.
Why is display advertising important?
- Display ads are more affordable and reach a larger audience. They are used by advertisers to promote clothes, hotel chains, public events, etc.
- Website visitors who are re-targeted with display ads are 70% more likely to convert on your website.
- Display network offers advertisers contextual targeting by keywords, placement targeting by sites, topic targeting by relevance and demographic targeting based on age, gender, preferences, location and language.
- 90% of agencies and marketers believe that display ads help with branding.
- It leads to increased website traffic, and increased sales.
- These display ads can be effectively used by businesses of all sizes.
Coke’s most successful Display Ad case study
When Coca-Cola’s popularity decreased among Millennials, the brand developed the ‘Share A Coke’ campaign specifically for a Mexican audience to raise awareness and increase sales and brand love. For the campaign, Coca-Cola found the top 100 searches on YouTube and created short ads with the names of the most-searched artists, athletes, and trending YouTubers.
Coca-Cola’s website received almost two million visits during the campaign, and more than 51 percent of them came from mobile devices. View KPIs increased by 4,000 percent, and the cost per view decreased to 2 percent ofthe initial estimated budget. Additional metrics included
- 1.7 million users reached
- 81 million media impressions on display
- 175 million social media views
- 3.2 million views for the TV commercial
- CTV average of 3.98 percent during the campaign
- 80 percent of target reached
- 51 percent of website traffic from mobile devices
- 44 percent of Mexico shared a Coke
- Awareness increased 11%
What is Native Advertising
Native Advertising called ‘recommended content’ or ‘promoted stories’ is a monetized type of advertising on a website except slightly differing from display ads in a way that attempts to mimic the format of the publisher’s content. Native advertising comprises 6 main types of ads online: in-feed (which is ad units in a content stream), recommended links, sponsored search results, promoted product listings, traditional display banners with native content, and custom integration. Most of the native pricing is on CPM basis for the campaigns.
How is the Native ad used?
Since Native advertising is designed specifically not to look like an ad, it is almost everywhere and hard to ignore. It’s designed to look like and blend with the rest of the content on the page. As a result, users interact 20-60% more with native ads than traditional banner ads. As per Google Ads, in the last four years, the search for native ads has been growing in numbers. You may notice this ad type at the bottom of a blog or a FB post. It could appear as ‘recommendations’ or ‘other people also liked’ with suggested examples for users to click on.
Why use Native Advertising?
The in-feed content in Native advertising, can include videos, animations, or carousels of images. When native ads take on the looks of the content around it, they actually become non-disruptive ads. They are found in social media in the form of sponsored posts. Also, since these ads are interactive they are the best for brand building through trust by engaging with a customer. It is an up-coming ad type mostly used by new media companies. Today native ads constitute about 20% of all advertising revenue.
The Native ad case study
- Campaign: Asian Beauties from Neverblue
- Ad Copy: Would you date an Asian Woman?
- Campaign period: Mar 30, 2019 – Apr 7, 2019
- GEO: USA
- Total spent: $934
- Total Revenue: $1397
- Net profit: $463
- ROI: 50%
The advertiser worked in two stages:
– In the first stage he started with a CPC campaign to get at least 50 impressions for each ad zone. After that, added these zones to the blacklist regardless of the CTR (by clicking Zone Limitation «Exclude» in the account settings) to redirect traffic to zones that weren’t tested yet. Started with $50 and got $58 for 11 conversions. So, the profit was $8. Then decided to scale this campaign to CPM.
– In the second stage he created a CPM campaign and targeted zones with the CTR higher than 0.7% (Zone limitation “Include” in the personal account). Then he blacklisted all the under performing zones. After all the testing, he had 8 zones, with two of them generating 80% of the profit. He spent $884 and got $1339 for 255 conversions. The profit — $455
3. Search Advertising
What is Search Advertising?
Search advertising or search engine marketing (SEM), or Pay-Per-Click (PPC) is the process of advertising on search engines. Search ads are text ads displayed on Google’s search result page. Worldwide Google handles over 75,000 search queries per second. It enjoys a worldwide ranking as #1 search engine, ahead of its competitors Yahoo, Bing, and Baidu. Thereby, moving up one spot in Google’s search results can increase CTRs by up to 30.8%. Google shows your ad in the same format as other search results except that it earmarks it as an ‘Ad’. SEM is mostly combined with SEO (Search Engine Optimization is the organic and not paid form of advertising. Here, advertisers use SEO tactics, like creating keyword-friendly content, back linking, meta descriptions, etc.).
How is the Search Advertising used?
There are two search ads formats, viz. text ads and product listing ads.
- Text ads appear as ‘Ad’ above or on the right side of an organic search.
- Product listing ads (PLAs) mostly seen on e-commerce websites, show the image, price, description and link of your product when a potential customer is searching for a product based on a keyword.
These advertisements are found on search engines like Google, Yahoo!, and Bing. They are purchased based on the most relevant keywords a potential buyer uses to search for a product or service. However, recent shifts in PPC strategies are showing an increase in PLAs and ‘Semantic search’ (find meaning and or intent in the words) slowly replacing a direct keyword search.
Why search advertising?
- Paid search advertising allows advertisers to place their products/service in front of people who are already looking for the product/service.
- Since the ad is shown to potential customers who are searching for a similar product or service, there is a high chance of the user clicking on your product and converting it into a sale.
- With Google searches at 3.5 billion per day, search ads reach a larger target audience.
Case study of a Search Advertisement
- Client: Automotive Industry
- Goals: Reduce cost per sale from Google AdWords & Reduce monthly spend while generating more online sales.
The advertiser began with identifying the highest value conversion points, restructuring the account to only target keywords and products that would best drive the selected conversions. By understanding the way consumers buy, they could target consumers looking for specific products. They allocated an additional budget towards increasing the bids, to increase the average search position, earn a larger click share, and win the highest value auctions.
- Increased Online Sales by 73% vs. prior year
- Deduced Cost Per Sale by 57% vs. prior year
Social Media Advertising
What is Social Media Advertising?
Social advertising is the use of social media sites to run an advertising campaign. By Q4 of 2019, the total number of social media users had crossed earlier estimates to reach 2.95 billion users worldwide. In 2020, that number is expected to surpass 3 billion.
How is the Social Media advertising used?
As per a recent study by Statista, the social media advertising segment amounts to USD 105,863 million in 2020 and is expected to have an annual growth rate (CAGR 2020-2024) of 6.0%, resulting in a market volume of USD 133,756 million by 2024 (not taking into account the recent coronavirus (COVID-19) implications on global trade).
The Social Media Platforms available for Advertising
Most marketers are using platforms like Facebook, Instagram, and Twitter in their marketing campaigns.
The other emerging platform is TikTok with 500 million active users worldwide. As per CNET, by end 2019, TikTok crossed 1.5 billion downloads, becoming the third most downloaded non-gaming app of the year, after WhatsApp and Messenger. Facebook and Instagram followed in fourth and fifth places. While grocery retailer Kroger was the first to run an ad campaign on TikTok, famous brands like TacoBell are now using TikTok.
Social ads charge advertisers on a CPC, CPM and other basis. However, the pricing will depend on the different types of ads like photo ads, video ads, stories ads, carousel ads, slideshow ads, messenger ads, collection ads, snap ads, tweet ads, sponsored content, etc. Here is a quick cost comparison between the three top platforms to give you an overall idea of pricing but of course your company, your product and your brand will determine the ad budget and the social media platform allocation to maximize the profits and return on investment (ROI).
Why is advertising on social media sites important?
- 97% of marketers use social media.
- 78% of marketers using Social Media outsell their peers.
- Social Media ads help to build brand awareness.
- The social media ad spend has risen to USD 89 billion in 2019.
- It helps to build a clientele henceforth bettering Brand Loyalty.
- Improves conversion rate.
- Reduces marketing costs as it is cheaper than traditional marketing.
- Rise in search engine rankings.
Case Study of Bajaj V’s Social Media Ad
- Campaign: SonsOfVikrant
- Objective: Promote Bajaj V – The Nation’s Bike
A ten day social media campaign run by Bajaj Automobiles, touched the minds and hearts of the whole nation as INS Vikrant one of India’s aircraft carriers was scrapped and its steel was melted and used to create the Bajaj V.
Result: Bajaj V gained 0.7 Million USD worth of free media coverage in just one week of the launch. It created 160 million impressions, reaching out to 32 million overall. And the most important one, Bajaj sold 11,000 bikes on the first day of launch. It got 984,862 views on Youtube and more than 23,000 views on Facebook.
What is video advertising?
Video advertising is a process of running online display ads that have video within them to promote a company, product or website. These ads play before, during or after a video stream on the internet. 57% of marketers are now including video marketing in their digital marketing strategy.
How is the Video advertising used?
There are different video ad formats. The main ad formats used by YouTube, the largest video hosting platform, include TrueView Ads, Non-skippable video Ads, Bumper Ads, Outstream Ads, YouTube Masthead Ads. For more details, read about YouTube here. Video ads can be purchased on a cost per mille (CPM) basis, but are also typically priced on a cost per view (CPV) basis, allowing advertisers to pay for the ad only if someone watches or interacts with it.
Why is video advertising gaining popularity?
- Being the most engaging form of online content, video ads have higher recall.
- Video will remain a key driver of advertising expenditures on display, projected to account for 31% of overall display ad spending next year.
- More than 50% of consumers like to watch videos of the brands they support.
- In 2019, video ads saw an increase in ad spending mainly in the fashion and retail industry.
- Almost 88% of video marketers are happy with its ROI.
- As per a study by Forbes, videos get shared 1,200% more than text and links combined.
- Mobile ads on YouTube get the viewer’s attention 83% of the time.
- Everyday people watch 1 billion hours of video on YouTube.
- 90% of the potential buyers have discovered new products on YouTube
- Companies and brands like LEGO or Coca-Cola have started uploading video content on their respective brand channels.
Case Study of a Video Ad
- Campaign: Meri Maggi
- Goal: Brand image
A classic example of a video ad used to regain brand image was by none other than Maggi Noodles. When the product got banned in India in 2015, its sales dipped from INR 250-300 crore a month to in between 5%-10% in various states.
In November, when the company re-launched Maggi after the five-month ban, it had 10.9 percent of the market share, which climbed to 35.2 percent in December. The relaunch campaign did include press ads and an extremely touching video launched across different platforms.
Pay Per Click (PPC) Advertising
What is PPC advertising?
Pay per click (PPC) ads are ads that advertisers only pay for when a user clicks on them. PPC ads are usually text ads but sometimes includes a small image. Google AdWords and Bing Ads both use a pay-per-click model.
How is the PPC advertising used?
This type of advertising is used to direct a potential buyer to your website. It is important to have a PPC landing page that is optimized for conversions. Google has now removed PPC ads from Right Hand Side so they now appear on the top of the page only.
Why PPC advertising?
- PPC marketing is done through Google Ads, the worlds’ largest search engine thereby boosting the traffic to your website.
- It can deliver a large number of impressions and clicks because of the large amount of traffic, especially on Google, leading to an increase in sales.
- This type of advertising is highly successful if the advertiser has rightly focused on relevant keywords and the quality of the landing page for a higher quality score.
- Advertisers can make changes to optimize the campaign to improve the quality score which helps to increase the ROI.
- Helps to control the ad budget.
- Can improve brand recognition with remarketing.
Case study of a PPC Ad
- Campaign: Dental Clinic, London
- Goal: To increase the number of leads their ads were generating while lowering the cost per lead.
The strongest USP of this UK clinic, was the doctor a native Polish speaker. So the marketing team targeted the niche audience of Polish speakers living in London close to where the clinic is based, to create ads and select keywords in the Polish language pointing to a dedicated landing page. Constant refining of the keywords and target audience was required.
- In the first 50 days, the number of conversions increased considerably, up 409% from 20 to 107.
- Conversion cost came down to £7.41 from £44 (when client managed own campaign)
- The conversion rate also improved — up over 207% — from 4.38% to 13.44%.
7. Remarketing Advertising
What is retargeting advertising or remarketing?
Remarketing (or retargeting) is a type of online advertising that allows you to serve targeted ads to people who have already visited your website earlier. A remarketing ad allows you to strategically position your ads in front of the target audience as they browse Google or its partner websites, to increase brand awareness and to remind the user to make a purchase.
How do retargeting ads work?
It is a cookie-based technology that follows the user around the internet, by serving ads on the websites and platforms which the user visits most often in order to remarket to him/her again. Retargeting is required since almost 98% of users leave the website without converting on the first visit. Thereby, these 98% users need to be reminded or targeted about a product /service of interest once they leave the website. Here’s how retargeting works:
Why Retargeting Ads?
- Retargeting increases the conversion by 150%.
- The average CTR (Click Through Rate) for Retargeting Ads is 10 times more than display ads.
- Remarketing Ads have a CPC (Cost Per Click) which is 50% that of the PPC search ads.
Case study of a Retargeting Ad
- Campaign: Jabong
- Goals: To increase transactions by acquiring more high-quality customers who are more likely to convert or make a purchase & to improve app activation rates to drive traffic to the Jabong.com mobile app and control user acquisition costs.
Jabong the e-commerce website has successfully used Facebook’s dynamic ads to retarget potential customers by showing them products they have looked at on both Jabong.com’s website and app, allowing the brand to customize ads to every individual.
By Personalised Acquisition using “Retargeting” and creating custom advertisements Jabong was able to:
- 2X increase in customer acquisitions
- 5X increase in app activation rates
- 40% lower user acquisition cost on mobile app
- 30% lower cost per order
What is In-game advertising?
In-game advertisements are ads that may exist within computer games on desktops/PC, mobiles or tablets. In-game advertising is a digital advertising strategy provided by game developers to boost their revenue. Game developers earn money and get paid by showing the ads to the users.
How does In-game advertising work?
The ads which become a part of the user experience in a 3D game setting through virtual objects, such as, billboards, posters, or bus stops, help to improve the game app engagement and also the retention rates.
The different types of in-game advertising include –
- Dynamic In-game advertising that can be inserted or removed in real-time, inside of Console and PC video games is charged on CPM or cost per thousand impressions pricing model.
- Console Integration in the form of square tiles in the Xbox Live dashboard has a higher CPM rate.
- In the Static In-Game Advertising model where advertising is programmed directly into a game, it is normally a flat fee anywhere starting with USD 50K.
- Advergames are developed for the purpose of promoting a company, brand, or product which can run into hundreds of thousands of dollars.
Why the growing popularity of In-game Advertising?
- 62% of smartphone owners install games within the first week of purchasing a new phone.
- Games can be designed with the sole purpose of advertising a brand.
- It offers advertisers an option to position the product in the game, to reach the right audience with the right message.
- Market for in-game advertising on all devices in the US alone, to touch USD 3 billion in 2019.
- The ad spend in all games grew by 16% in 2019.
- Retargeting in gaming apps is generating revenue uplift of over 50% among paying users.
Case study of an In-game Ad
- Campaign: Nike Epic React
Nike named their shoe ‘Epic React’ and created a game named React Land to promote this new line of shoes in four cities. This was Nike’s idea to use gamification to attract a young target audience. After putting on a pair of Epic Reacts and creating an avatar, the player is transported to React Land, a virtual world where he/she navigates as the main character by running on a treadmill and using a handheld button to jump. In the 3-minute game, players can choose to explore a floating metropolis in China, a super soft panda land, the Fuji Mountain, a view of Santorini, a jumping frog in France and many more. After the success of this ad, Nike announced a share value increase of 7%, putting it back in direct competition with Adidas in the sneaker market.
What is email advertising?
Email ads are interactive ads that appear in the Promotions and Social tabs of the email inbox.
How do email ads work?
Email ads are ads sent to a user via the web mail. It can include an image, video, or embedded forms. These ads are cheaper than most others. It aims to create leads, to enhance relationship with the customer, to encourage loyalty, and to grow repeat business.
Why Email Advertising?
- Email ads help to reach affinity audiences.
- Can customize the target audiences in Display campaigns by applying keywords.
- Offer an option of automated targeting to reach potential customers whom you wouldn’t otherwise reach, at around the same cost per person.
- You can reach people on the Display Network basis demographic categories, like age, gender, income, hobbies, etc.
- Dynamic remarketing ads are possible but the targeted Gmail ads must have a minimum of 100 active visitors or users within the last 30 days for your ads to show.
- This ad type is good for promotions, new features, and discount offers.
- An Email ad looks organic prompting the user to click.
Case Study of an email advertising campaign
- Campaign: Wok to Walk
- Goal: Local customer creation, Brand Awareness
Wok to Walk, a health food company, sent a newsletter with a subject line that invited recipients to call, make inquiries and order a meal. This email generated an open rate of 18.1%. Next step they checked the statistics and selected email subscribers who didn’t open the previous email.
The same email was sent – but the subject line was changed to better suit this new segment by including a phone number, making it easier for people to call even if they didn’t open the email. This second email received 7.7% additional subscribers, resulting in a higher level of email engagement.
What is mobile advertising?
Today with mobiles becoming a quintessential part of our lives, mobile advertising is growing in importance. Mobile advertising is placing ads to run specifically on mobile devices such as cell phones, smartphones, tablets, and wearable technology with the use of enhanced campaigns. Marketers often combine mobile advertising with other digital advertising channels like display advertising, search advertising, social media advertising, and video advertising.
How do mobile ads work?
Mobile advertising is targeted. It allows the advertiser to personalize the content for a specific audience. When Samsung wanted to promote its Galaxy S6 smartphone, they created an interactive mobile ad for people to experience what the company was talking about with a demo on their smartphone. The other winning mobile ads are Ruffles potato chips, GAP remix logo launch, Nissan Rogue SUV launch, and Starbucks.
Why is mobile advertising or mobile marketing important in 2020?
- Global mobile ad spending in 2019 reached USD 190 billion.
- In India, mobile ad spending is expected to rise from approx. USD 460 million to USD 1.73 billion in 2021.
- 29% of the time is spent on desktops and 71% on mobile devices
- 80% of internet users own a smartphone.
- 70% of B2B buyers increased mobile usage over the past years.
Case Study of a video ad
- Campaign: Pay Attention
- Goal: Create Awareness
In 2018, cosmetic brand Avon India aimed to raise awareness about breast cancer among women in India through its #PayAttention campaign. Avon had a breast self-examination (BSE) video for women to help them identify the signs of breast cancer.
- 15 % SOV and awareness in breast cancer
- Reached over 1 billion people of India at USD 25k
- On social media, Avon reached out to 917 million on Facebook, 101 million on Twitter, 109 Million through PR stories and 29 influencer videos with 36 million impressions.
- #PayAttention was top trending hashtags around Breast Cancer Awareness in India.
- 200,000 interactions were created on FB and near 185,000 interactions on Facebook posts.
The coronavirus (COVID-19) has disrupted our world, our thinking, and our way of doing business. This impact will surely be felt by every company, big or small. Once the global crises passes, there will be renewed spending on digital platforms to adapt rapidly to the new normal. This new normal stage requires new advertising strategies and new execution plans across all channels. With a fair idea on paid advertising, it’s time to get ready to leverage the right ads for your company or brand when the time is right. How to establish new goals to maximize the ROI, how to rework ad budgets, how to re-prioritize the channel amplification, how to pivot from the standard content marketing plan, how to target all devices buyers use, are all questions a digital advertiser will need to be prepared with. There will never be a right or wrong answer but always an in-between that is the ‘right fit’. We have only put you on a fast track to think on the right lines to restrategize your digital advertising campaign. Time to work on it further!
Coronavirus (COVID-19) will bring about deep changes in digital advertising. Ad revenues, social media, e-commerce will impact Google Ads, Social Media ads, affiliate earnings and publisher advertising earnings. Digital advertisers will require to get ready for a new normal in paid advertising from 2020. In this blog, we have tried to contain maximum information and some relevant statistics on digital advertising. There will never be a right or wrong answer but always an in-between that is the ‘right fit’. We have only put you on a fast track to think on the right lines to restrategize your digital advertising campaign. Time to work on it further!
- Google is positioning Discovery ads as a better way to reach online shoppers.
- 86% of online consumers are on a lookout for shopping ideas as they watch videos or content across the web.
- 90% of users discover new products and brands on YouTube Watch Next.
- Discover reaches hundreds of millions of consumers using the Google Search App.
- One campaign overs three giant Google products- Discovery Feed, Gmail, and Youtube.
Last May, Google announced at Google Marketing Live that ads are coming to discover. As a part of that, the Google Discovery ads were previewed for the Android and iOS feed, as well as Gmail and YouTube, and they are now finally rolled out to all advertisers globally last month.
With a single campaign, advertisers can reach 2.9 billion users across multiple Google surfaces- YouTube Home and Watch Next feeds, Discover feed on the Google Search app, and in Gmail Promotion and Social tabs. This approach to audience totals is similar to Facebook who started reporting usage across its ‘family of apps’ last year. Facebook reported 2.99 billion monthly active people (MAP) as of March 31. In simple words, Google is offering reach on par with Facebook.
All ads feature visual-rich product photography and are labelled.
- YouTube: Ads include an interactive carousel format and appear as users scroll through the Home and Up next feed while looking for new videos.
- Discover: Ads appear along with sports and personalized updates. The feed is available on Android, iOS app, and mobile web at google.com.
- Gmail: As per Google, ‘time offer’ appears as shoppers are checking the latest product deals in the Promotion tab of their inbox and are marked with a green badge that appears on the top of the feed like an email.
Unlike search ads, no need to type the query manually but Google is leveraging its understanding of what customers are interested in.
Thanks to Google’s unique understanding of customer intent, you’ll be able to show more relevant, meaningful ads to people when they’re most interested and ready to learn more about your products and services.
Why should Advertisers use Discovery
Google recommends for advertisers looking for:
- Drive conversions with their media
- Reach new customers with their media.
- Reconnect with their valuable customers.
Early Adopters of Discovery Ads
Early adopters like Deckers, iProspect, and M&M Direct have seen excellent results-driving customer action with Discovery ads alongside their existing media.
Lifestyle apparel brand Deckers worked with digital agency Jellyfish to promote the UGG brand’s 2019 holiday guide using Discovery ads. Deckers used repurposed high-quality images from its social campaigns and saw a revenue return of 10 times of its original ad spend. It plans to implement Discovery ads across the rest of its portfolio including HOKA and Teva.
Michelle Hernandez, senior manager of Omni-digital marketing at Deckers said,
“While Discovery ads don’t appear on social platforms per se, they offer rich, visually engaging experiences filled with meaningful content that excites and inspires consumers as they scroll through new content on YouTube, Discover and Gmail. This is where more and more consumers are engaged and spending time.”
In early 2019, digital marketing agency iProspect tested Discovery ads with several large clients and reported a reduction up to 48% in cost per action compared to social ads.
iProspect senior director of paid search Christina Malcolm said, “We’re finding that Discovery ads are an interesting ad type that blurs the lines between traditional search, display, and social activations, but which can target different audiences and hit conversion performance goals.”
If you have failed to notice the Discovery ads in the feed yet, then that’s because Google is treading lightly. Currently, there is only one ad slot – in position three-on the Discover feed as Google is aiming high-quality bar and only showing the ads with best image assets that are relevant to users. However, the company also confirmed that more ads are likely to be rolled out.
How to get started with Discovery campaigns
Discovery ads are set up in Discovery campaigns with two ad formats: Discovery carousel ads with multiple images and Discovery ads with a single image.
Image Assets: Google scans your website for images that meet the size requirement, upload images, or select from the Shuttershock library. The key is to have high-quality images.
Headlines and Description: Discovery ads serve a combination of headlines and descriptions automatically. One can enter up to 5 headlines and 5 descriptions.
Geographical Targeting: Google shows a weekly impression estimate based on geographical targeting.
Call To Action Option: Google can automatically choose the call-to-action text in your ads or there are 10 other options such as ‘Apply Now’, ‘Shop Now’, and more available to choose from.
Finally, Discovery ad campaigns can be targeted by location, audience, or demographics. This is Google’s automated universal campaign and smart bidding is required. In its Discovery ads tips page, Google notes that advertisers should “Choose an average daily budget at least 10 times the value of your target cost-per-action (CPA) bid and wait for at least 40 conversions before making changes to your campaign.”